Which of the following persons is subject to tax return preparer penalties for the return(s) mentioned? a. ...

90.2K

Verified Solution

Question

Accounting

           Which of the following persons is subject to tax return preparerpenalties for the return(s) mentioned?
a.         Meredith is thedirector of Federal taxes for a C corporation, and prepares hermother’s return for $50.
b.         Sammy is avolunteer who prepares returns at the retirement home under the IRSTax Counseling for the Elderly program.
c.         Abbie preparesher mother’s tax returns for free. A CPA, Abbie would charge aclient $750 for completing a similar return.
d.         Lizzie, a taxreturn preparer company’s administrative assistant, makes copies ofreturns and assembles the returns.
e.         John, the headof a corporation’s accounting department, prepares thecorporation's return.
That's all the information i got inthe question.

Answer & Explanation Solved by verified expert

4.2 Ratings (764 Votes)

As per IRCa preparer means any person who prepares for compensation or who employs person or persons to prepare for compensation any return of tax imposed or any claim of refund Thus a preparer does not include a person who prepares a tax return without receiving compensation Looking to the above definition and the option a to e of question See Answer

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member

Transcribed Image Text

Which of the following persons is subject to tax return preparerpenalties for the return(s) mentioned?a. Meredith is thedirector of Federal taxes for a C corporation, and prepares hermother’s return for $50.b. Sammy is avolunteer who prepares returns at the retirement home under the IRSTax Counseling for the Elderly program.c. Abbie preparesher mother’s tax returns for free. A CPA, Abbie would charge aclient $750 for completing a similar return.d. Lizzie, a taxreturn preparer company’s administrative assistant, makes copies ofreturns and assembles the returns.e. John, the headof a corporation’s accounting department, prepares thecorporation's return.That's all the information i got inthe question.